Ford dealership to close down with loss of 41 jobs
Published 01/06/2011 | 05:00
One of the country's biggest Ford dealerships is to shut with the loss of 41 jobs, after a receiver was appointed to take control of the company.
Yesterday, staff at South Dublin Motors were told that two showrooms, in Tallaght and Rathfarnham, were to close after Bank of Scotland (Ireland) appointed Kieran Wallace of KPMG as receiver over the company.
The bank is understood to be owed about €6.5m by the company; other large creditors include Ford itself and the Revenue Commissioners.
Armada Fleet Services, which also operates out of the Rathfarnham premises, will continue to trade as normal and will be unaffected by the announcement, according to the receiver.
The most recent audited accounts for South Dublin Motors date back to 2008. At that stage losses for the year were running at €1.3m.
Debts at the time were about €20m, including €12m owed to Ford and €6.5m to Bank of Scotland Ireland.
Since then the Revenue Commissioners have taken two separate actions to try to have the company wound up. The most recent action was taken on March 31 and the case has yet to be decided by the High Court.
Bank of Scotland made its move before waiting for the High Court decision. The bank has a number of charges over the company and its assets -- including property and vehicles.
FCE, Ford's bank, also has a charge over assets.
A previous case taken by the Revenue Commissioners failed to have the business wound up.
In addition to sales and servicing, the company operates a large car and van rental business and owns in excess of 1,500 Ford vehicles.
South Dublin Motors suffered a €1.3m loss in 2008, according to accounts filed with the Companies Office. Turnover fell from €57m in 2007 to €48m in 2008.
Figures from the Society of the Irish Motor Industry show that sales of new Ford cars in Dublin have halved since 2007, dropping from 8,400 to 4,200.